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Pharmaceutical Pricing Agreement 2025

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The document outlines the General Instructions for completing the Pharmaceutical Pricing Agreement (PPA) required under Section 340B of the Public Health Service Act. It details the responsibilities of manufacturers in pricing covered outpatient drugs, defines key terms such as Average Manufacturer Price (AMP) and Covered Entity, and describes the process for dispute resolution, confidentiality provisions, and termination of the agreement. Manufacturers must ensure compliance with pricing regulations and maintain records for audits while the Secretary of Health and Human Services oversees adherence to these agreements.

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Click ‘Get Form’ to open the Pharmaceutical Pricing Agreement in the editor.
Begin by filling in the Manufacturer's details in Section IX, including the name, address, and contact information. Ensure accuracy as this information is crucial for identification.
In Section I, review and understand the definitions provided. This will help you accurately interpret terms like 'Average Manufacturer Price' and 'Covered Entity' as they relate to your responsibilities.
Proceed to Section II where you will outline the Manufacturer's responsibilities. Clearly state how pricing will be determined based on AMP and rebate percentages.
Once all sections are completed, ensure that a corporate officer signs the document in Section IX. This signature is essential for validation.
Finally, print the completed agreement directly from our platform for submission to the Office of Pharmacy Affairs Branch (OPA). Remember to submit two signed originals if you require a counter-signed copy.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is a 340B contract pharmacy?

Contract pharmacies serve as an extension of the 340B provider and allow patients access to their prescribed drug treatments in the convenience of their local community pharmacy or through the mail (i.e., mail-order pharmacy).

What is a PPA in pharmacy?

Pharmacy Provider Agreement (PPA) means the agreement between Contractor and each pharmacy within the CPN that sets forth the Dispensing Fee and obligations of the pharmacy with respect to pharmacy services provided to MHLA Program Patients. View Source.

Is CVS a 340B pharmacy?

The majority of 340B contract pharmacy arrangements are with for-profit chain pharmacies. Among the top four retail pharmacy chains (Walmart, CVS, Rite Aid and Walgreens), an incredible 71% of locations held 340B contracts in 2022.

How do 340B contract pharmacies make money?

In return for dispensing discounted drugs on behalf of the 340B provider, these pharmacies, called contract pharmacies, earn a fee for each prescription dispensed or a portion of the 340B revenue generated by drug sales to 340B patients.

How does 340B pricing work?

The 340B program allows these providers, known as covered entities, to buy discounted outpatient prescription drugs from manufacturers and bill payers at the nondiscounted price. In this way, the program generates revenue for these hospitals and clinics so they can expand care for low-income and uninsured patients.

How many 340B contract pharmacies are there?

About 32,000 pharmacy locationsnearly 60% of the entire U.S. pharmacy industryfunction as contract pharmacies for the hospitals and federal grantees that participate in the 340B program.

What is the pharmaceutical pricing strategy?

Types Of Pharma Pricing Strategies Volume-Based Pricing. Market-Based Pricing. Value-Based Pricing. Cost-based pricing.

Pharmaceutical Pricing Agreement 2025

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